India’s National Payments Corporation has launched a tap-and-pay feature within its Unified Payments Interface, setting the stage for a full rollout of Apple Pay anticipated next month, potentially reshaping the digital payments landscape.
MUMBAI, Sept 10 (Reuters) – The National Payments Corporation of India (NPCI) announced the launch of a tap-and-pay feature for its Unified Payments Interface (UPI) on Thursday, a significant enhancement to the country’s real-time payments framework. This development comes in anticipation of a full rollout of Apple Pay in India, expected by October 2025, which could further stimulate the growth of digital transactions in the nation.
The UPI has been recognized as the world’s largest retail fast-payment system by transaction volume, according to a recent report from the International Monetary Fund (IMF). In August 2025 alone, UPI processed an astonishing 24.51 billion transactions, amounting to a total value of 29.82 trillion rupees (approximately $314.21 billion). This impressive performance underscores the increasing reliance on digital payments in a country that has been transitioning away from cash.
Details of the New Tap-and-Pay Feature
The new tap-and-pay functionality enables users to complete transactions by merely tapping their smartphones at point-of-sale terminals, eliminating the need to navigate through the UPI app. This innovative feature utilizes near-field communication (NFC) technology, designed to operate effectively even in areas with limited or no network connectivity. Ajay Kumar Choudhary, the NPCI’s non-executive chairman, emphasized the importance of this advancement during his remarks at the Global Fintech Fest in Mumbai, highlighting its potential to enhance user experience in a diverse and rapidly evolving market.
Implications for the Digital Payments Ecosystem
The introduction of the tap-and-pay feature is expected to streamline payment processes in India, where cash transactions have historically dominated. As digital payment methods gain traction, this new functionality is likely to enhance user convenience and accessibility, particularly in rural and underserved regions where internet connectivity can be sporadic. This move aligns with the Indian government’s broader initiative to promote a cashless economy, supported by various policy measures aimed at increasing digital literacy and financial inclusion.
The NPCI’s initiative also reflects the significant changes in the payments landscape over the past few years, driven by the rapid growth of fintech companies and evolving consumer preferences. In this context, the tap-and-pay feature is poised to further catalyze the shift towards digital transactions, potentially increasing the total transaction volume processed through UPI.
Apple Pay’s Entry into the Indian Market
While a beta version of Apple Pay has been accessible in India for some time, local media reports suggest that a comprehensive launch of the service is on the horizon. This anticipated rollout could significantly alter the competitive dynamics within India’s digital payment sector. The entry of Apple Pay is expected to attract a substantial user base, particularly among the tech-savvy population increasingly reliant on smartphones for financial transactions.
The integration of Apple Pay with UPI may enhance consumer trust in digital payments, given Apple’s established reputation for security and user privacy. As the platform is designed to function seamlessly with iOS devices, it is likely to appeal to millions of iPhone users in India, further propelling the adoption of contactless payments.
Future Outlook for Digital Transactions
As India’s digital payments ecosystem continues to evolve, the introduction of features like tap-and-pay may not only improve user experience but also encourage further innovation among fintech companies operating in the space. The NPCI’s proactive approach in adopting new technologies, such as NFC, indicates a commitment to maintaining UPI’s leadership position in the global payments landscape. This strategic move is likely to set a precedent for other countries seeking to enhance their digital payment capabilities.
The next few months will be crucial for both the NPCI and Apple as they navigate the complexities of launching and promoting their respective services in a competitive market. Stakeholders in the financial and technology sectors will be closely monitoring these developments, as they could have far-reaching implications for the future of digital transactions in India. In a country where the population exceeds 1.4 billion, the potential for growth in digital payment adoption remains substantial, driven by governmental support and increasing consumer confidence in mobile financial solutions.
In conclusion, the introduction of the tap-and-pay feature within the UPI framework marks a significant milestone in India’s journey towards a more digitized economy. As Apple Pay prepares for its full launch, the interplay between these two major players in the digital payments arena could redefine consumer behavior and payment preferences, paving the way for a more integrated and efficient financial ecosystem.
